The following are the required subjects to be included in the course of study and the required number of hours to be devoted to this course. All appraisal schools must utilize this course outline in conducting their programs. This course outline is not intended to substitute for specific outlines for the proposed course.
The below course must be completed by all new Supervisory Appraisers and Trainee Appraisers who become credentialed as of January 1, 2015.
SUPERVISORY APPRAISER / TRAINEE APPRAISER COURSE
SCOPE OF SYLLABUS
1.
COURSE OBJECTIVES
.25 HOUR
2.
COURSE INTRODUCTION AND OVERVIEW
.25 HOUR
3.
QUALIFICATION AND CREDENTIALING ENTITIES
.25 HOUR
4.
QUALIFICATIONS FOR APPRAISER CREDENTIALS
.5 HOUR
5.
OVERVIEW - USPAP SECTIONS RELEVANT TO TRAINEE APPRAISER
.5 HOUR
6.
OVERVIEW - SUPERVISORY APPRAISER EXPECTATIONS AND RESPONSIBILITIES
1 HOUR
7.
OVERVIEW - TRAINEE APPRAISER EXPECTATIONS AND RESPONSIBILITIES
1 HOUR
8.
SUMMARY
.25 HOUR
9.
GLOSSARY OF TERMS
TOTAL HOURS: 4
19 NYCRR § 1103.3(e)(4) is amended to read as follows:
(4) Other course fees. Appraisal schools shall pay the Department an annual registration fee of $25 for offering each of the following courses: Statistics, Modeling and Finance; Introduction to Residential Income Properties; Fair Housing, Fair Lending and Environmental Issues 15 hour course; Fair Housing, Fair Lending and Environmental Issues 20 hour course; Specialty Appraisals; Using the HP12C Financial Calculator; Supervisory Appraiser/Trainee Appraiser Course and any other elective approved by the Department.
19 NYCRR § 1103.3(e)(5) is amended to read as follows:
(5) Secondary locations. Appraisal schools wishing to offer an appraisal course at a location other than the primary location listed on its approval application to the Department, shall pay annual fees as follows. An annual fee of $250 shall be paid to the Department for each said secondary location if the initial application fee for offering the appraisal course to be offered at the secondary location was $250. If the initial application fee for the appraisal course to be offered at the [secondary] primary location was $25, the fee for offering an appraisal course at the secondary location shall be $25.
Text of proposed rule and any required statements and analyses may be obtained from:
David A. Mossberg, Esq., New York State Dept. of State, 123 William Street, 20th Fl., New York, NY 10038, (212) 417-2063, email: david.mossberg@dos.ny.gov
Data, views or arguments may be submitted to:
Same as above.
Public comment will be received until:
45 days after publication of this notice.
This rule was not under consideration at the time this agency submitted its Regulatory Agenda for publication in the Register.
Regulatory Impact Statement
1. Statutory authority:
Executive Law section 160-d (Art. 6-E) authorizes the New York State Board of Real Estate Appraisal (the “Board”) to adopt regulations in aid or furtherance of the statute. One of the purposes of Executive Law Article 6-E is to ensure the qualification of licensed and certified real estate appraisers. To meet this purpose, the Department of State (the “Department”), in conjunction with the Board, has issued rules and regulations which are found at Chapter XXXI of Title 19 of the NYCRR and is proposing this rulemaking.
2. Legislative objectives:
Pursuant to Executive Law Article 6-E, the Department, in conjunction with the Board, licenses and regulates real estate appraisers. To provide protections against unqualified appraisers, the statute requires licensees and certificate holders to satisfy minimum educational requirements. The proposed rule advances this legislative objective by ensuring that appraiser applicants satisfy the minimum educational standards required for licensure or certification.
3. Needs and benefits:
The Federal Appraisal Qualifications Board (the “AQB”), in accordance with the authority granted to said body pursuant to Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (Title XI), establishes minimum qualification standards for real property appraisers. Recent changes to the AQB requirements mandate that new appraisers seeking certification or licensure complete a basic educational course concerning supervisory and trainee appraiser responsibilities. States are required to implement appraiser standards that are no less stringent than those issued by the AQB.
By adding the regulations as proposed, the Department will meet updated AQB requirements and ensure that appraiser applicants meet federal minimum qualification standards.
4. Costs:
a. Costs to regulated parties:
The Department anticipates nominal costs to individuals seeking new licensure and/or certification in that the proposed rulemaking will require appraiser applicants to take a new educational class not previously required. The Department estimates the cost for specific approved courses to range from $60 to $75 for new applicants. Additionally, schools offering educational classes will have to pay the Department an annual registration fee of $25 for course approval.
b. Costs to the Department of State:
The Department does not anticipate any additional costs to implement the rule. Existing staff will handle the processing of applications for both individual applicants and occupational schools seeking course approvals.
5. Local government mandates:
The rule does not impose any program, service, duty or responsibility upon any county, city, town, village, school district or other special district.
6. Paperwork:
In applying for an appraisal license or certification, applicants are required to complete an application establishing that they have satisfied the educational standards required by statute for the relevant license or certification. The proposed rule would retain this existing requirement.
7. Duplication:
This rule does not duplicate, overlap or conflict with any other state or federal requirement.
8. Alternatives:
The Department considered not proposing a new rule. It was determined, however, that the proposed regulatory amendments are necessary to meet the Department’s obligation to ensure that licenses are granted to qualified applicants in compliance with minimum federal standards established by the AQB.
9. Federal standards:
The Federal Appraisal Qualifications Board (the “AQB”), in accordance with the authority granted to said body pursuant to Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (Title XI), establishes minimum qualification standards for real property appraisers. States are required to implement appraiser standards that are no less stringent than those issued by the AQB.
10. Compliance schedule:
The rule will be effective September 1, 2014. Insofar as the AQB and the Department have conducted outreach to the regulated public about the relevant changes effected by this rulemaking, licensees and prospective licensees will be able to comply with the rule.
Regulatory Flexibility Analysis
1. Effect of rule:
The proposed rulemaking establishes new educational criteria for individuals applying for state licensure or certification as a real estate appraiser. To provide protections against unqualified appraisers, Article 6-E of the Executive Law requires licensees and certificate holders to satisfy minimum educational requirements. The proposed rule advances this legislative objective by ensuring that appraiser applicants satisfy the minimum educational standards required for licensure or certification as established by state and federal standards. The Federal Appraisal Qualifications Board (the “AQB”), in accordance with the authority granted to said body pursuant to Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (Title XI), establishes minimum qualification standards for real property appraisers. States are required to implement appraiser standards that are no less stringent than those issued by the AQB.
By adding the regulations as proposed, the Department will meet updated AQB requirements and ensure that appraiser applicants meet minimum qualification standards. The proposed rulemaking requires an additional 4 hours of educational training for all new Supervisory Appraisers and Trainee Appraisers who become credentialed as of January 1, 2015. The rulemaking also requires schools to pay to the Department an annual fee of $25.00 to approve the mandated class. Finally, the proposed rulemaking cures a typographical error concerning an existing rule.
The rule does not apply to local governments.
2. Compliance requirements:
Insomuch as the proposed rulemaking applies only to individuals seeking licensure and/or certification, small businesses and local governments will not have additional reporting, recordkeeping or other affirmative obligations with the implementation of these regulations. The existing statutes and regulations already require minimum education for licensure; the proposed rulemaking supplements these current requirements by satisfying updated AQB requirements. Further, occupational schools seeking authorization to provide the additional course will follow existing Departmental procedures and protocols for course approvals.
3. Professional services:
Small businesses and local governments will not need professional services to comply with this rule. Further, applicants seeking licensure or certification will not need to rely on any new professional services in order to comply with the rule. Applicants and licensees are already required to satisfy minimum education qualifications pursuant to Article 6-E of the Executive Law and AQB standards. Insofar as licensees must already attend and complete approved education courses, conforming the regulations to the updated AQB standards will not result in the need to rely on any new professional services. The Department expects education providers to begin offering new approved courses in accordance with this rule making.
4. Compliance costs:
The Department anticipates nominal costs to individuals seeking new licensure and/or certification in that the proposed rulemaking will require appraiser applicants to take new educational classes not previously required. The Department estimates the cost for specific approved courses to range from $60 to $75 for new applicants. Additionally, schools offering educational classes will have to pay the Department an annual registration fee of $25 for course approval.
The rule does not impose any compliance costs on local governments.
5. Economic and technological feasibility:
Small businesses and local governments will not incur any significant costs as a result of the implementation of, or require technical expertise to comply with, these rules.
6. Minimizing adverse economic impact:
The Department did not identify any alternatives which would achieve the results of the proposed rules and at the same time be less restrictive and less burdensome in terms of compliance. The rule does not impose any additional reporting or recordkeeping requirements on licensees and does not require prospective licensees to take any affirmative acts to comply with the rule other than those acts that are already required pursuant to Executive Law, Article 6-E and the AQB standards.
7. Small business and local government participation:
No significant comments have been received regarding the proposed rulemaking. On April 8, 2014 the Department and the New York State Board of Real Estate Appraisal discussed at an open meeting the updated AQB requirements and methods to establish new educational criteria to ensure compliance with federal minimum standards. In addition, the Notice of Proposed Rule Making will be published by the Department of State in the State Register. The publication of the rule in the State Register will provide notice to local governments and additional notice to small businesses of the proposed rulemaking. Additional comments will be received and entertained.
8. Compliance:
The rule will be effective September 1, 2014.
9. Cure Period:
The Department is not providing for a cure period prior to enforcement of these regulations. Prior to proposing this rule, information regarding the updated AQB requirements was provided on the Department’s website and discussed at an open meeting. As such, licensees have had adequate notice of the proposed regulation. Further, the proposed rulemaking is necessary to ensure that the applicants seeking licensure and/or certification satisfy minimum standards established by federal guidelines.
Rural Area Flexibility Analysis
1. Types and estimated numbers of rural areas:
The proposed rulemaking is not expected to have any adverse impact on rural areas. The proposed rule supplements current educational requirements for certain real estate appraiser applicants by requiring a new 4-hour training course for all new Supervisory Appraisers and Trainee Appraisers who become credentialed as of January 1, 2015. The rule also imposes an annual fee of $25.00 on schools seeking authorization to provide instruction in the new training course. Finally, the rule cures a typographical error with an existing rule.
The Federal Appraisal Qualifications Board (the “AQB”), in accordance with the authority granted to said body pursuant to Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (Title XI), establishes minimum qualification standards for real property appraisers. States are required to implement appraiser standards that are no less stringent than those issued by the AQB.
By adding the regulations as proposed, the Department will meet updated AQB requirements and ensure that appraiser applicants meet minimum qualification standards.
2. Reporting, recordkeeping and other compliance requirements; and professional services:
The Department does not anticipate any additional reporting, recordkeeping or other compliance requirements of this rule or that professional services are likely to be needed in rural areas to comply with the rule. Existing statutes and regulations already require minimum education requirements for licensure, the rulemaking will not impose any new reporting, recordkeeping or other compliance requirements on public or private entities in rural areas other than those acts that are already required pursuant to Executive Law, Article 6-E and the AQB standards.
3. Costs:
The proposed rulemaking does not impose any costs on rural areas to comply this rule.
4. Minimizing adverse impact:
The Department did not identify any alternatives which would achieve the results of the proposed rule and at the same time be less restrictive and less burdensome.
5. Rural area participation:
No significant comments have been received regarding the proposed rulemaking. On April 8, 2014 the Department and the New York State Board of Real Estate Appraisal discussed at an open meeting the updated AQB requirements and methods to establish new educational criteria to ensure compliance with federal minimum standards. In addition, the Notice of Proposed Rule Making will be published by the Department of State in the State Register. The publication of the rule in the State Register will provide notice to interested parties in rural areas of the proposed rulemaking. Additional comments will be received and entertained.
Job Impact Statement
1. Nature of impact:
The proposed rulemaking will not have an adverse impact on employment opportunities. The proposed rule supplements current educational requirements for certain real estate appraiser applicants by requiring a new 4-hour training course. The rule also imposes an annual fee of $25.00 on schools seeking authorization to provide instruction in the new training course. Finally, the rule cures a typographical error with an existing rule.
The Federal Appraisal Qualifications Board (the “AQB”), in accordance with the authority granted to said body pursuant to Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (Title XI), establishes minimum qualification standards for real property appraisers. States are required to implement appraiser standards that are no less stringent than those issued by the AQB. By adding the regulations as proposed, the Department will meet updated AQB requirements and ensure that appraiser applicants meet minimum qualification standards.
While the Department anticipates nominal costs to individuals who will now be required to complete the additional class and to schools seeking authorization to offer the new course, such costs will not have any adverse impact on employment opportunities.
2. Categories and numbers affected:
The proposed rulemaking will not have any adverse impact on employment opportunities. The instant rulemaking merely conforms existing education regulations to updated minimum standards established by the AQB. The rulemaking will not have any foreseeable impact on jobs or employment opportunities for real estate appraisers.
3. Regions of adverse impact:
The proposed rulemaking will not have any disproportionate regional adverse impact on jobs or employment opportunities.
4. Minimizing adverse impact:
The proposed rulemaking will not have any adverse impact on employment opportunities. Moreover, the Department did not identify any alternatives which would achieve the results of the proposed rules and at the same time be less restrictive and less burdensome in terms of compliance.
